The Insurance Regulatory and Development Authority of India (IRDAI) has imposed a fine of totaling Rs 2 crore to HDFC Life Insurance for violating various IRDAI norms, the company said on Thursday in a exchange filing.

A fine of Rs 1 crore was imposed for issues related to safeguarding the interests of policyholders. Also, the company was fined Rs 1 crore additionally for irregularities related to outsourcing services.

"IRDAI issued an Order dated August 01, 2024, levying a penalty in aggregate of Rs. 2 crore for violation of provisions of applicable IRDAI Regulations: Penalty of Rs.1 crore (Rupees One crore) with respect to certain aspects pertaining to Protection of Policyholders' Interest; Penalty of Rs.1 crore (Rupees One crore) with respect to certain aspects of Outsourcing of services undertaken by the Company and payment of Commission or Remuneration or Reward for solicitation of insurance business," the company stated.

According to the company, the penalty was imposed by the regulator IRDAI after an onsite inspection conducted in September 2020 covering the financial years 2017-18, 2018-19 and 2019-20.

In addition to financial penalties, IRDAI has issued further guidelines and advisories to the insurance provider HDFC Life. The company has been instructed to adhere to these guidelines within a stipulated timeframe to rectify the identified deficiencies and ensure compliance with regulatory standards.

The Insurance Regulatory and Development Authority of India (IRDAI) is a statutory body established by the Insurance Regulatory and Development Authority Act, 1999 (IRDA Act, 1999) to supervise and develop India's insurance sector. The primary objectives of IRDAI are to protect the interests of policyholders and facilitate the orderly expansion of the insurance industry in the country.